Lenders withdrawing from London lending - due to endemic fraud.

Conrad

2 lenders have advised me as follows;

Melton Building Society (one of the few sub prime lenders remaining) - have introduced a blanket ban on London lending citing endemic fraud, namely that applicants and brokers routinely falsify income and status.

Lender 2 (sorry I cannot name them for legal reasons) - apparantly decline most applications from certain London locations, such as Barking and Ilford. Recently struck off 47 out of 50 East London brokers where 'post offer' status checks were made. This is from the regional manager. Most common theme was food trade workers over stating income. I suspect is is because these workers cannot prove tips, so are forced to overstate basic salary.

lostinrates

Conrad wrote: »

one of the few sub prime lenders remaining.... endemic fraud.

gosh..who'd a thought it

This is an interesting move. I'm surprised it doesn't involve problems with discrimination.

Thank you for sharing this conrad.

sarkin1

[FONT=Arial, Helvetica, sans-serif]Shepshed Building Society[/FONT] dont lend in London